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S E M I N A R

Thank you for attending our seminar:

Presented by:

Chris Rotondo, Division Administrator, Federal Motor Carrier Safety Administration (FMCSA)

FMCSA/DOT Regulation Update

November 3, 2017

Table of Contents


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The information contained in this handout is proprietary property of Fundamental Labor Strategies®, Inc.

Do not distribute or reproduce without the express written permission of Fundamental Labor Strategies®, Inc. © 2006-2017 Fundamental Labor Strategies®, Inc.

FUNDAMENTAL LABOR STRATEGIES®, INC. About FLS……………………………………………………………………………..……………3

What We Do and Why Quick Facts Our Credentials Benefits of Partnering with FLS Contact Information

TODAY’S SEMINAR Event Details…………………………………………………………….………………….…….….4

Agenda What You Will Learn

About the Speaker……….…………………………….……………...………….……….….……..5

Background Information Contact Information

Social Media Information.....………………………………………………………………………...6 PowerPoint Slides...………..…………………………………………………………………...…...7

“FMCSA/DOT Regulation Update”

About FLS


WHAT WE DO AND WHY

Driver employers universally face challenges in four basic areas (see pie chart, right). We provide products that address and solve these fundamental driver employer issues including:

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Labor

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Relations

Our mission is to establish and maintain mutually beneficial, open, direct, and long-term relationships with our em-ployees, customers, and suppliers.

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Risk

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Compliance


“

AGENDA

08:30 am - 09:00 am Guest Arrival and Continental Breakfast

09:00 am - 10:30 am Presentation Part I

10:30 am - 10:45 am Mid-Morning Break

10:45 am - 12:00 pm Presentation Part II

12:00 pm - 01:00 pm Buffet Lunch

WHAT YOU WILL LEARN

Today’s seminar will focus on FMCSA transportation highway safety plans and commercial motor vehicle safety initiatives facing the industry in 2017 and beyond.

Topics to Include: Electronic Logging Device rules and regulations

- Potential impact on transportation sector - Coercion and harassment, complaints or allegations

FMCSA regulations relating to driver qualifications (medical examinations and the requirements to use National Registry License & medical professionals) CDL requirements link to medical standards (with NJMVC) Controlled Substance / Alcohol Testing requirements

- Impact of legalized marijuana and medical marijuana - Economic impact of safety vs noncompliance

What’s on the horizon?


Event Details

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BACKGROUND INFORMATION

Mr. Chris Rotondo, currently Division Administrator for the Federal Motor Carrier Safety Administration, New Jersey Office, has over 30 years of experience. He has held positions with the USDOT throughout the United States as a Motor Carrier Safety Specialist, Field Agent, Field Office Supervisor, Regional Program Coordinator, State Director, Service Center Director and Division Administrator. Chris also serves on the FMCSA Capital Planning Board and Executive Steering Committee for Policy and Planning helping to advance highway safety and security programs as well as the proper monitoring and evaluation of the FMCSA safety programs.

About the Speaker

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Chris Rotondo Division Administrator

Email: [email protected]


Social Media

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Fundamental Labor StrategiesNov. 3, 2017

Inn at Lambertville Station

Lambertville, NJ

Federal Motor Carrier Safety Administration

Federal Motor Carrier Safety AdministrationNew Jersey Division

Christopher Rotondo- Division Administrator 609-275-4380

[email protected]

TOPICS and OVERVIEW

Electronic Logging Devices (ELD), Coercion/Harassment Rule, Safety Fitness Determination (SFD), Fixing America’s Surface Transportation (FAST Act)


49 CFR part 391: Overview of the Federal Motor Carrier Safety regulations as they relate to Driver Qualifications (medical examinations and the requirements to use National Registry Licensed Medical Professionals);49 CFR Part 383: Commercial Driver’s License requirements and how the medical standards are linked, (link with NJMVC)49 CFR Part 382 / and Part 40: Controlled Substance / Alcohol Testing requirements and the impact of legalized marijuana and Medical marijuana (rising topic area in many states)Economic impact of safety vs noncompliance to include the economic forecast for crashes (what a crash actually costs the carrier)

Agenda● FMCSA – Background

● Economic Impact

● Electronic Logging Devices

● Coercion Rule / Harassment

● Safety Fitness Determination FAST Act

● 391 Medical / CST’g

Federal Motor Carrier Safety Administration 3

● To reduce fatalities, injuries and property damage resulting from crashes involving commercial motor vehicles.

FMCSA’s Mission


FMCSA’s Mission


NEW JERSEY DEMOGRAPHICS


Intra –vs‐ Interstate carriers


● 1)Raise the bar to enter the industry and operate on the nation’s roadways;

● 2)Hold motor carriers and drivers to the highest safety standards to continue operations; and

● 3)Remove the highest risk drivers, vehicles and carriers from our roads and prevent them from operating.

FMCSA’s Three Core Principles


PERSPECTIVE 43,911● Standard 747 passenger aircraft seats approx. 450

● Equals approx. NINETY EIGHT 747 ‘s a year

● Standard Motor Coach seats 52

● Equals approx. 844 a year

● 2016 NJ Total Fatalities 603 = 1.6 daily

● 2017 to date Fatalities 465 = 1.5 daily



UnitCrashCostsCras VALUE 2015 PER CRASH h Cost Category Value (2015 $) perAll Large Trucks Motorcoaches

Lg. trucks Motor Coaches

Medical Costs $71,400 $172,600 Emergency Services $1,800 $4,500 Property Damages $17,100 $17,000 Lost Productivity from Roadway Congestion $43,100 $43,100 Environmental Cost and Fuel $3,000 $3,000

ValueofaStatisticalLife(VSL)(CY2015)Crash Cost Category Value (2015 $) per Fatality

CY2015 Value of a Statistical Life (VSL)

$9,600,000

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● 1967 ‐ The Department of Transportation was created.

● 1967 ‐ the Bureau of Motor Carrier Safety was moved from the ICC to the Federal Highway Administration.

● 1980 – Deregulation happened ‐Motor Carrier Act of 1980. Pub L. 96‐296, 94 Stat. 793.

Time Lines


● 1982 – MCSAP was created with the Surface Transportation Assistance Act of 1982; Highway Improvement Act of 1982. Pub. L. 97‐424, 96 Stat. 2097. this statute established the Motor Carrier Safety Assistance Program (MCSAP).

Time Lines


● Prior to 1984, how did we select motor carriers for review?

● Complaints, Crashes, For‐Hire operations, carriers never visited, special projects etc.

● In the early 80’s, a Pennsylvania based motor carrier challenged the Departments selection process for review.

● The result were ETA and SCE lists.

Time Lines


● 1984 ‐ The Motor Carrier Safety Act of 1984 was passed. Section 215 of the Motor Carrier Safety Act of 1984 requires the Department of Transportation and the ICC to establish a safety fitness procedure for commercial motor vehicle owners and operators.

● What was the Concern? Deregulation, 18% jump in CMV crashes, ICC wanted safety ratings prior to issuing authority.

Time Lines


● 1993 ‐ The Motor Carrier Safety Status Measurement System (SafeStat)

● Measure the relative safety fitness of commercial motor vehicle operators and guide the deployment of resources to focus on carriers posing the greatest safety risk. SafeStat combines information on crashes, roadside inspections, traffic violations and compliance reviews from the previous 30 months to produce an overall SafeStat score for carriers with sufficient safety data.

Time Lines


● 1999 ‐Motor Carrier Safety Improvement Act of 1999, created the Federal Motor Carrier Safety Administration starting on January 1, 2000.

Time Lines


● 2008 ‐ Compliance Safety Accountability, (CSA) begins as a pilot and has since replaced SafeStat for carrier selection.

Time Lines


CMV Industry• 525,000 companies• 7 million CDL holders

Passenger Carriers• 12,000 companies• 4,000 motorcoach

companies• 700 million passenger trips

FMCSA Enforcement • 409 in the field• 300 investigators• 152 inspectors• 43 auditors

FMCSA Oversight


DECEMBER 18, 2017


Purpose● Provide an overview of the Electronic Logging Device

(ELD) Rule and FMCSA’s plan for its phased implementation● Major components of the ELD Rule

● ELD Implementation Phases

● ELD Specifications

● Harassment Prohibition

● Supporting Documents


Major Components of ELD Rule● Requirements for the mandatory use of ELDs by most

drivers currently required to prepare Record of Duty Status (RODS)

● Minimum performance and design standards (Technical Specifications) for ELDs

● Requirements for Hours of Service (HOS) supporting documents

● Measures to prevent harassment through the use of ELDs


Who is required to use an ELD?● Interstate CMV drivers currently required to keep RODS

● Subject to requirements in 49 CFR 395

● Drivers of CMVs defined in 49 CFR 390.5● ≥ 10,001 pounds

● Placarded hazmat

● More than 8 or 15 passengers

● 100 and 150 air‐mile radius drivers who use paper RODS more than 8 days in any 30‐day period


Exemptions ● 100 air‐mile radius drivers may continue to use

timecards, as allowed by §395.1(e)(1)

● 150 air‐mile radius non‐CDL freight drivers may continue to use timecards, as allowed by §395.1(e)(2)

● Using paper RODS for not more than 8 days during any 30‐day period

● Conducting “drive away‐tow away” operations

● Driving vehicles manufactured before model year 2000


Awareness and Transition Phase

February 16, 2016– December 18, 2017


Phase 1: Awareness and Transition


Important Dates● Registration and voluntary use of ELDs begins 60 days

after the ELD Rule is published (February 16, 2016)

● Compliance date is 2 years after ELD Rule is published (December 18, 2017)

● AOBRDs must be upgraded or replaced with ELDs within 4 years of the publication of the Final Rule (December 16, 2019)● I.e., AOBRDs compliant with § 395.15 that were installed

before the compliance date could be used (grandfathered) for 2 years after the compliance date


Phase 1: Awareness and Transition● System providers register and certify their ELDs – a

Compliance Test Procedure is on FMCSA’s website

● Motor Carriers can choose to voluntarily use ELDs, AOBRDs, or Devices with Logging Software Programs versus paper logs for RODS

● Authorized safety officials need to distinguish the different types of devices and cite the appropriate regulation or guidance for enforcement purposes

● Harassment Legal Procedures


Definition and Specifications


Automatic On‐Board Recording Device (AOBRD)and

Device with Logging Software and Applications

AOBRD

● Integrally Synchronized

● Automatically records drivers driving status

Device with Logging Software and Application

● Not Integrally Synchronized

● Manually input driving duty status


What is an ELD?● A device that:

● Automatically records a driver’s driving time

● Facilitates the accurate recording of the driver’s HOS

● Meets the technical specifications of the ELD rule

● Is integrally synchronized with the engine of the commercial motor vehicle (CMV)


Minimum Technical Standards● Generally based on performance – maximize flexibility,

minimize cost

● Standard outputs for a consistent enforcement

● Include minimum output requirements for electronically transferred, displayed, and printed ELD information and output


Engine Synchronization● Integral synchronization to the engine control module

(ECM)

● Monitoring of the vehicle’s engine operation to automatically capture:● Engine’s power status

● Vehicle’s motion status

● Miles driven

● Engine hours


Automatically Recorded Data● Date

● Time

● Location Information

● Engine Hours

● Vehicle Miles

● Vehicle information number (VIN)


ELD Location Recordings

● Engine power up and shut down

● Duty status changes

● 60‐minute intervals when the vehicle is in motion

● Personal use or yard moves


Geolocations● Show a nearby city, town, or village, or the compass

direction and distance from the nearest city, town, or village

● During on‐duty driving periods, the location accuracy is approximately within a 1‐mile radius

● When a CMV is used for personal use, the position reporting accuracy is approximately within a 10‐mile radius


Identification information and Manual Input

● Identification information entered when logging into an ELD is automatically recorded for: ● Drivers

● Motor carrier support personnel (for ex. dispatcher, mechanic, etc.)

● Motor carriers


Data Diagnostics and Malfunctions● ELD identifies data diagnostics and malfunctions with

status as either “detected” or “cleared” for:● Power

● Data Synchronization

● Missing Data

● Timing

● Positioning

● Data Recording

● Data Transfer

● Unidentified Driver Records


ELD Record of Duty Status


ELD Record of Duty Status● It is required that RODS be shared in one of two ways

at roadside (choice of the driver or motor carrier):● Printout (not all ELDs provide)

● Screen display visible to enforcement at a reasonable distance

● Acceptance of data via fax, email or other method of transmission is at the discretion of the regulatory body

● SAFETY & SECURITY o systems (VASP)


ELD Information included in Daily Header● 24‐Hour Period Starting Time● Carrier Name● Co‐Driver Name● Co‐Driver ID● Current Location● Data Diagnostic Indicators● Driver Name ● Driver ID● Driver’s License #● Driver’s License State● ELD Malfunction Indicators ● ELD Manufacturer Name● ELD Registration ID● Truck Tractor ID ● Unidentified Driver Records

● Exempt Driver Status● File Comment● Miles Today● Print/Display Date● Record Date ● Shipping ID● Start/End Engine Hours● Start/End Odometer● Time Zone ● Trailer ID● Truck Tractor VIN● USDOT #


ELD Information – Daily Header


Record Date USDOT # Driver License Number Driver License State ELD ID Trailer ID20‐Nov‐14 123456789 D000368210361 IL 987654 Unit #Time Zone Driver Name Co‐Driver Name ELD Manufacturer Shipping ID Data Diagnostic IndicatorsCST Smith, Richard Acme ELDs BL1234567890 No24 Period Starting Time Driver ID Co‐Driver ID Truck Tractor ID Unidentified Driver Records ELD Malfunction IndicatorsMidnight 1234567 Unit # No NoCarrier Start End Odometer Miles Today Truck Tractor VIN Exempt Driver Status Start End Engine HoursAcme Trucking 39564 ‐ 39984 420 1M2P267Y5AM022445 No 758.2‐765.7Current Location File Comment Print/Display Date6 mi. NE North Auburn, CA 20‐Nov‐14

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24‐hour Duty Status Grid


ELD Detail Log Data


Time Location Odometer Eng Hours Event Type/Status Origin20‐Nov‐14

0:00 49 mi NNE Fallon, NV 39564 758.2 SB Driver10:00 49 mi NNE Fallon, NV 39564 758.2 Login Driver10:00 49 mi NNE Fallon, NV 39564 758.2 ODND Driver10:52 49 mi NNE Fallon, NV 39564 758.2 Power Up Auto11:00 49 mi NNE Fallon, NV 39564 758.2 Driving Auto12:00 2 mi E Fernley, NV 39624 759.3 Int Location Auto13:00 7 mi NNE Truckee, CA 39684 760.3 Int Location Auto14:00 6 mi SSE Meadow Vista, CA 39744 761.3 Int Location Auto15:00 3.5 mi SW Davis, CA 39804 762.3 Off Duty Driver17:00 3.5 mi SW Davis, CA 39804 762.3 Driving Auto18:00 1 mi E Emeryville, CA 39864 763.4 Int Location Auto19:00 4 mi SSW Univ. of California, CA 39924 764.4 Int Location Auto20:00 6 mi NE North Auburn, CA 39984 765.5 ODND Driver21:00 6 mi NE North Auburn, CA 39984 765.7 Off Duty Driver23:00 6 mi NE North Auburn, CA 39984 765.7 ODND Driver23:58 6 mi NE North Auburn, CA 39984 765.7 Cert Driver23:58 6 mi NE North Auburn, CA 39984 765.7 Logout Driver

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Harassment● Harassment is action taken by a motor carrier that the

carrier knew (or should have known) would result in a driver violating the Hours of Service (HOS) rules [49 CFR 395 or 49 CFR 392.3].

● The carrier’s action must be based on information from an ELD or other technology used in combination with an ELD.

● A carrier who harasses a driver will receive a penalty for harassment in addition to the HOS violation [49 CFR 392.3 or part 395].


Harassment: Technical Changes● Mute function ensures a driver is not interrupted in the

sleeper berth

● Anti‐tampering provisions:● Limited ability to edit ELD records for both drivers and

motor carriers

● Required driver approval when a carrier edits an ELD record

● Preservation of original ELD records, even when edited


Harassment Legal Procedures● Rule requirements to file a complaint about

harassment—a driver should file a written complaint:● Within 90 days of the event

● Using the National Consumer Complaint Database (http://nccdb.fmcsa.dot/gov)or

● With the FMCSA Division Administrator for the State (http://www.fmcsa.dot.gov/mission/field‐offices) where the driver is employed


Harassment Complaint1. Driver’s name, address, and telephone number

2. Name and address of the motor carrier allegedly harassing the driver

3. Statement of the facts to prove each allegation of harassmenta. How the ELD or other technology used with the ELD added to

harassment

b. Date of the alleged action

c. How the motor carrier’s action violated either 49 CFR 392.3 or 49 CFR 395

4. Driver’s signature

5. Supporting evidence



ML(2

ML(2 Supporting documents requirements does not go into effect until12/18/2017Mimms, LaTonya (FMCSA), 12/17/2015

Supporting Documents, cont.● Maximum of 8 documents per 24‐hour duty day

● More than 8 documents per day: must retain first and last document of day

● Even if a document does not include time, it must be retained

**If a driver does not use an ELD, all toll recordsmust be retained


Categories of Supporting Documents1. Bills of lading, itineraries, schedules, or equivalent with

the origin and destination of each trip

2. Dispatch records, trip records, or equivalent

3. Expense receipts related to on‐duty (not driving) periods

4. Electronic mobile communication records

5. Payroll records, settlement sheets, or equivalent


Supporting Documents, cont.● Retained by Motor Carrier for 6 months

● Driver name (or carrier‐assigned ID)● Can be vehicle unit number if that number can be linked to

the driver

● Date

● Location (including the name of nearest city, town or village)

● Time


Industry Outreach● Education for stakeholders and the public about ELDs

and the final rule in each phase:● www.fmcsa.dot.gov/elds

● Outreach Material (brochure(s), fact sheet(s), visor cards, website material, video clips)

● Social Media (FMCSA/DOT Facebook, Twitter, YouTube, Blog)

● Articles in Industry Publications

● Webinar Video: Link


Contact Informationhttps://www.fmcsa.dot.gov/hours‐service/elds/electronic‐logging‐devices

Public email address: [email protected]

Law Enforcement email address: [email protected]


Harassment Vs CoercionHarassment Coercion

ELD No ELD

Motor Carrier Applicable to Motor carriers and others

49 CFR § 390.36(b) Engaging in harassment of a driver as a primary violation

49 CFR 390.6(a)(1) Coercing a driver of a commercial motor vehicle to operate such vehicle in violation of 49 CFR parts 171‐173, 177‐180, 380‐383 or 390‐399, or 385.415 or 385.421 (to be used for violations of the FMCSRs and HMRs) ;or49 CFR 390.6(a)(2) Coercing a driver of a commercial motor vehicle to operate such vehicle in violation of 49 CFR parts 356, 360, or 365‐379 (to be used for violations of the FMCCRs) . (Motor Carriers only)

Requires a 49 CFR 392.3 or Part 395 as a secondary violations


Prohibiting Coercion of Commercial Motor Vehicle Drivers (The Coercion Rule)

● Published on November 30, 2015

● Response to Congress’s requirement for the Agency to ensure that drivers are not coerced to violate safety or hazardous material regulations.

● The rule was applied to the Federal Motor Carrier Commercial Regulations and safety regulations


Who is Subject to the Rule?

● Targets:● motor carriers;

● shippers;

● receivers;

● transportation intermediaries ;

● respective agents officers;

● representatives

That threaten drivers with loss of work or other adverse employment actions for refusing to operate a commercial motor vehicle in violation of certain provisions


What Regulations are Covered under the Rule?

• Certain provisions of the Federal Motor Carrier Safety Regulations

• Hazardous Materials Regulations

• Federal Motor Carrier Commercial Regulations


What is Coercion?The act of coercion only exists if:

● A motor carrier, shipper, receiver, or transportation intermediary request a driver to perform a task that would result in the driver violating certain provisions of the FMCSRs, HMRs, or the FMCCRs;

● The driver informs the motor carrier, shipper, receiver, or transportation intermediary of the violation that would occur if the task is performed, such as driving over the hours of service limits or creating unsafe driving conditions; and

● The motor carrier shipper, receiver, or transportation intermediary make a threat or take action against the driver’s employment or work opportunities to get the driver to take the load despite the regulatory violation that would occur.


What does the Rule mean to the Field?

● Starting January 29, 2016

● Determining whether the coercion complaint meets the requirements in the Coercion rules

● Investigate non-frivolous complaints

● Dismiss frivolous complaints

● Notify complainants about the status of their complaints and the reasons for their decisions.


Summary of the Coercion RuleThe Coercion Rule allows drivers to report incidents of coercion to FMCSA and authorizes FMCSA to issue penalties against motor carriers, shippers, receivers, or transportation intermediaries that have coerced drivers.


Contact Information

https://www.fmcsa.dot.gov/safety/coercion


Proposed Safety Fitness Determination Process● Onlyonesafetyfitnessdetermination– UNFIT.

● Ifthecarrierisnotunfit,thecompanymaycontinuetooperate.

● Carriersarecomparedtofixedfailurestandardnotpercentiles(asinSMS);● Notimpactedbychangesinothercarriers’scores.

● CrashData:Preventabilityreviewstillrequired.


DifferencesbetweenSMSandSFD

● InterventionthresholdsinSMS– muchlowerthanSFDthresholds.

● SMSonlyneeds3or5inspectionstoscore– SFDwouldneed11+inspectionswithviolations oneachinspection.

● SMSisbasedonpercentiles– SFDwouldbebasedonabsoluteperformancemeasures.

● SMSscorescanbeimpactedbyothercarriers– SFDwouldonlybeimpactedbycarrier’sownsafetyinspectionviolations.


Fixing America’s Surface

Transportation Act

(FAST Act)

The Federal Motor Carrier Safety Administration

• Enacted on December 4, 2015 (PL 114‐94)

• Five year bill that sets FMCSA authorization funding levels through FY 2020.

• MCSAP grant programs will be restructured beginning in FY 2017 along with an increase in MCSAP funding.

• Operating expense authorization levels slightly increased through FY 2020.

• Significant number of Agency mandates:

– Studies: 4

– Working Groups: 5

– Rulemaking: 20

– FMCSA Reports to Congress: 14

FAST Act Overview


Highlights

• Grant Consolidation

• CSA Study

• Beyond Compliance Program

• Veteran Driver Provisions


Highlights: Grants Programs FY 2016-2020• Motor Carrier Safety Assistance Program (MCSAP) grants

programs will be consolidated starting with FY2017 into one single formula-driven program. Consolidation of these programs allows for more efficient use of funds.

• MCSAP Basic/Incentive

• Border Enforcement Grants

• New Entrant Grants

• Requires full participation in the Performance and Registration Information Systems Management (PRISM) program no later than October 1, 2020, or the State demonstrates to the Secretary an alternative approach with an equivalent level of safety to be eligible for MCSAP funding.

• FMCSA to establish a working group to recommend a new MCSAP allocation formula.

• FMCSA must establish requirements for multi-year plans and annual updates so that States do not have to resubmit plans every Federal Motor Carrier Safety Administration 75

Highlights: Compliance, Safety, Accountability

• The FAST Act tasks FMCSA with commissioning the National Research Council of the National Academies to conduct a thorough study of the Compliance, Safety, Accountability (CSA) program and the Safety Measurement System (SMS).

• FMCSA will submit the results of the study to both Congress and the Department of Transportation’s (DOT) Office of Inspector General. The results will also be published on a publically accessible DOT’s website.

• If the report identifies a deficiency or opportunity for improvement, FMCSA will submit a corrective action plan to Congress that will be reviewed by the Inspector General of the Department.

• As required by the FAST Act, no property carrier information regarding analysis of violations or relative percentiles for each CSA BASIC are available to the general public until further notice. All information on passenger carriers remains available to the public.


Highlights: Beyond Compliance • The FAST Act requires FMCSA to create a Beyond Compliance

program to give carriers recognition, including credit in the CSA program, for voluntarily using advanced technologies or enhanced driver fitness measures.

• FMCSA may authorize qualified entities to monitor motor carriers that receive recognition, including credit or an improved SMS percentile.

• In advance of the FAST Act, the Agency issued a Federal Register notice on this subject in April 2015 to collect stakeholder input on the development of a Beyond Compliance program.

• In addition, FMCSA has tasked our Motor Carrier Safety Advisory Committee with reviewing this topic and providing recommendations.

• The first listening session on the Beyond Compliance program was held on January 12, 2016.

• FMCSA will issue a report to Congress identifying the number of carriers receiving recognition and the safety performance of those Federal Motor Carrier Safety Administration 77


MEDICAL MARIJUANA and RECREATIONAL DRUG LEGALIZATION

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Professionally Regulated Industry


• CMV operators are NEVER allowed to have Medical or recreational marijuana in their system

• MEDICAL MARIJAUNA use is prohibited

• RECREATIONAL Drug use is prohibited

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QUESTIONS?
